Unit Trust of India's assets under management have fallen to Rs 51,181 crore, their lowest level in the last five years. The mutual fund's market share has gone down from 85 per cent to just 50 per cent in the period.
In 1998-99, when the flagship US-64 scheme first found itself in trouble, UTI's assets were of the order of Rs 53,145 crore, with a market share of around 78 per cent.
UTI chairman M Damodaran recently said the mutual fund's share in the industry is an unfair indication of its strength, as US-64 accounts for more than 70 per cent of the fund's assets under management. Further, UTI has not launched a new scheme in the past two years.
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In the last five years, except during 1999-2000 and 2000-01, the Trust actually had a negative fund flow (net outflow of funds).
During 1997-98, UTI experienced outflows of Rs 11,325 crore against inflows of Rs 4,637 crore. At that time the Trust had admitted that redemptions and repurchases had gone beyond the estimated amount of around Rs 5000-odd crore. At the end of the year UTI's assets stood at Rs 60,979 crore.
In the following year, the Trust saw net outflows to the tune of Rs 2,736 crore -- most of it could be attributed to investors withdrawing their money from US-64. In the next year, with support coming from the government and under the leadership of a new chairman, there was renewed confidence among investors and UTI's asset base rose to Rs 72,333 crore with net inflows of Rs 4,548 crore. However, its share in the total assets pie slipped with more mutual funds joining in. UTI's share stood at 67 per cent at the end of the year.
2000-01 again saw a plunge in net assets, mostly due to erosion in the value of investments, to Rs 58,017 crore. Net inflows were to the tune of Rs 323 crore. In the current year so far net outflows have been to the tune of Rs 5152 crore.